ESG Concerns: What Does This Mean for the Fashion Industry?

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As the climatecrisis worsens, the fashion industry is called upon to take further action and responsibility for its ecological footprint. See more here. ESGConcerns

and Prada Group are following suit and setting trajectories to reach carbon neutrality by 2050, a target compatible with the Paris Agreement. This move towards increased responsibility among such industry leaders is more critical than ever. The ethical dimension of building a fashion brand has become the number one priority.

The growing number of Instagram-friendly brands that have completely built and designed their business models, brand image and values around sustainability means that consumers no longer have to settle for anything less than what they so eagerly demand: brands that demonstrate responsibility. However, although this shift is welcomed and beneficial to our environment, the excessive pressure imposed upon brands and the industry overall, has generated another challenge. The act of greenwashing is now a growing concern for investors and consumers alike. Known as the act of conveying false or misleading information about a company’s ESG action plans and actual results.

It is clear that the environmental aspect of ESG has received considerable attention. It is essential to clarify and understand what issues are covered by the “S” or social aspect of the acronym. To better understand the concept, it is crucial to see it as an interdependent concept, with each theme working together with social issues sitting at the heart of it all.

 

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